Improve Your Performance with Predictive Sales Metrics
Your sales team just closed another strong quarter. Revenue targets were met, celebrations are in order, and leadership is pleased. But three months later, you're staring at a dangerously thin pipeline wondering, "How did we get here?"
This scenario plays out in organizations everywhere. It's a direct result of managing sales performance through the rearview mirror. The solution? Predictive sales metrics that give you visibility into future performance before it becomes past results.
Key Takeaways
Lagging indicators show where you've been, but leading metrics reveal where you're going. Learn how to shift from reactive to proactive sales management.
Not all metrics are created equal. Discover the critical difference between KPIs and operational metrics, and why you need both for sales success.
Meeting quota today doesn't guarantee tomorrow's pipeline. Understand why current performance can mask future revenue gaps.
Predictive sales data transforms coaching conversations. Move from guesswork to targeted, data-driven sales improvements.
The right dashboard structure amplifies accountability. Unlock how strategic metric alignment drives consistent team performance.
The Hidden Risk of Relying on Lagging Indicators
Most business leaders are accustomed to tracking lagging indicators on their company-level scorecards. These are data points that reflect performance outcomes that assess the current state of the business.
In the sales department, common lagging key performance indicators (KPIs) include Total Sales, Gross Margin, Number of Units Sold, Sales Quota Attainment, and Customer Retention Rate.
The problem is that this view focuses all your attention on historical performance instead of future pipeline indicators.
Rear-facing indicators, such as how many units you sold in a given month or quarter, are important to track but they tell you nothing about what will happen in the future.
They're like driving while only looking in the rearview mirror. You can see where you've been, but you have no visibility into what's ahead.
Even when your sales team is performing to quota, that success can be short-lived without the right balance of proactive sales activity.
A team might hit their quarterly number while simultaneously letting their pipeline deteriorate, setting up for failure in the next quarter.
This is where predictive metrics become invaluable.
The Power of Leading Indicator Metrics
Leading indicator metrics provide a picture into how well sales activities are contributing toward KPIs that tie directly to strategic business goals.
These forward-looking measurements track the behaviors and activities that historically correlate with successful outcomes.
Armed with predictive metrics data, sales leaders can take a proactive and targeted approach to:
Sharpening sales skills through focused coaching
Heightening accountability with clear activity benchmarks
Adjusting sales strategy before problems compound
Identifying top performers' winning behaviors to replicate across the team
Allocating resources more effectively based on pipeline health
Forecasting revenue with greater accuracy and confidence
In this article, I’ll break down the differences between key performance indicators (KPIs) and metrics, and how to structure them in your sales dashboard to create insightful and actionable data.
“Leading indicator metrics provide a picture into how well sales activities are contributing toward KPIs that tie directly to strategic business goals. ”
Understanding the Strategic Difference: KPIs vs. Metrics
Metrics and KPIs are often considered the same thing in day-to-day business contexts. However, while they work in similar ways, they are not used for the same purposes. Understanding this distinction is critical to building an effective sales dashboard.
KPIs (Key Performance Indicators) measure performance directly related to key business goals.
They are strategic in nature and allow for high-level decision-making about the direction of the business.
KPIs answer the question: "Are we achieving our most important objectives?"
Metrics measure the performance or progress of the specific activities or processes that drive toward the KPI.
They are operational or tactical in nature and provide context for business activities. Metrics answer the question: "What specific actions are contributing to our KPIs?"
Therefore, all KPIs are metrics, but not all metrics are KPIs. This is why it is critical that your sales dashboards monitor both KPIs and sales metrics performance as they work together to give you both the strategic view and the tactical detail you need to lead effectively.
The below chart has a couple of examples to get ideas flowing as you consider the right KPIs and metrics for your unique sales environment.
What to Do When Your Sales Team Isn't Hitting Their Metrics
Leading your team to success in achieving their sales metrics involves many factors.
It starts with having “the right” sales dashboard visibility, a well laid out sales methodology, and a commitment to sales coaching.
The common challenge I find my small and mid-sized business clients share is not knowing if they have the right sales strategy, methodology and team structure in place to be positioned for success.
This uncertainty tends to translate into sales team metric adoption problems, and difficulty holding sellers accountable for their key responsibilities.
When metrics aren't being met, consider these diagnostic questions:
Are the metrics truly predictive? Do they correlate with successful outcomes, or are you tracking activity for activity's sake?
Is the target realistic? Metrics should stretch performance but remain achievable. Unrealistic targets breed disengagement.
Do sellers understand the "why"? When team members understand how their activities connect to company goals, they're more likely to buy in.
Are there skill gaps or resource constraints? Sometimes poor metrics reflect a training need or a systemic barrier rather than motivation issues.
Is there consistent accountability? Metrics only work when they're reviewed regularly and incorporated into coaching conversations.
Taking the Next Steps
In an upcoming article, I'll share several tips I've learned through my decades of sales leadership experience on how to tackle the roadblocks that prevent effective metric adoption and accountability. Make sure you subscribe or follow me on social media so you don't miss it.
Meanwhile, if you’re ready to start talking about how we can partner to design the right metrics to give you more confidence in your sales growth plans, contact me today at (513) 399-6994 or kevin@lighthousesalesadvisors.com, or book a call with me.
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I am part of a national group of Senior Sales Leaders who collaborate to share insights like the examples shown in this article. We formed because of our shared passion to help business leaders exponentially expand their revenue.